Previously the Bank of Mauritius raised its repo rate by 25 basis points to 5.50% at its June meeting, after raising 50 basis points in March this year to 5.25%. Mauritius reported inflation of 6.5% in August, down slightly from levels seen earlier in the year e.g. 7.2% in March, and 6.8% in February, meanwhile the bank expects inflation to decline to around 5.5% by June 2012.
The Bank revised its forecasts downward slightly and now expects the economy to grow about 4.1% this year (4.6% previous forecast), having recorded annual GDP growth of 4.4% in 2010. The Mauritian Rupee (MUR) has gained about 5% against the US dollar so far this year, with the USDMUR exchange rate trading around 29.35